Brazilian Agencies Modernize Systems to Improve Services, Efficiency
Public sector accelerates digital transformation to achieve measurable results under fiscal pressure, ISG Provider Lens® report says
SÃO PAULO–(BUSINESS WIRE)–
Public sector organizations in Brazil are expanding digital capabilities to increase administrative efficiency and improve delivery of constituent services, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® Public Sector Services and Solutions report for Brazil finds that digital transformation is becoming an administrative priority at the federal, state and municipal levels. Facing fiscal limits, agencies are making investments to lower operating costs and maintain essential services through coordinated programs. Public sector procurement practices increasingly emphasize traceability, information security and transparent contract management across complex regulated environments.
“Brazilian public agencies increasingly link modernization spending to measurable outcomes and stronger long-term institutional capacity,” said Nathan Frey, partner and Public Sector lead, ISG. “Their priorities reflect tight budgets, regulatory demands and rising expectations for efficient, transparent and citizen-centered digital services.”
Cloud computing, data engineering and platform engineering are becoming technological foundations for Brazil’s evolving digital government operations. Organizations are using these capabilities to unify fragmented environments and expand their capacity to make decisions based on reliable data. They are recognizing the value of interoperable platforms to connect legacy applications, multicloud resources and existing digital channels while avoiding customization costs and delays. However, adoption rates vary among agencies based on institutional maturity, available funding and the complexity of technology estates.
Automation is increasingly important for administrative processes, citizen services and analytical functions throughout Brazil’s public institutions. Agencies are tying implementations to clear performance indicators and operational benefits instead of treating digitization as a standalone technological objective. Federal technology investments are focused on establishing national platforms with interoperability and secure information sharing among departments. States are modernizing essential corporate platforms and increasing strategic AI use across their public service environments.
Brazilian municipalities are adopting standardized solutions, shared platforms and managed services to enhance integration and simplify the management of technology environments. This strategy allows them to expand operational capacity while keeping local budgets under control. In this context, demand is growing for consulting and business process outsourcing services that complement internal capabilities and accelerate strategic initiatives. Standalone projects are giving way to structured medium- and long-term programs aligned with broader digital strategies and focused on delivering measurable results, ISG says.
“Public agencies in Brazil need adaptable partners for secure integration throughout multiyear projects in complex, highly regulated environments,” said Sonia Maria Castral, lead author of the report. “There are service providers that can support agencies at varying maturity levels while protecting service continuity, strategic assets and institutional autonomy.”
The report also explores other trends in Brazil’s public sector, including the growing importance of digital sovereignty and expanded purchasing mechanisms for collaborative solutions tailored to specific agency needs.
For more insights into the challenges faced by public sector organizations in Brazil, along with ISG’s advice for overcoming them, see the ISG Provider Lens® Focal Points briefing here.
The report evaluates 28 providers across four quadrants: Strategy and Enablement Services (Consulting), Managed IT Services, Business Process and Other Outsourcing Services and Digital Transformation and Modernization Services.
It names Accenture, Minsait, Stefanini and TIVIT as Leaders in all four quadrants. It names Capgemini and IBM as Leaders in three quadrants each. Deloitte, NTT DATA and Sonda are named as Leaders in two quadrants each, and TOTVS Consulting is named as a Leader in one quadrant.
In addition, G4F, Spassu and Xertica.ai are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
A customized version of the report is available from G4F.
In the area of customer experience, NRI is named the global ISG CX Star Performer for 2026 among public sector service and solution providers. NRI earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2026 ISG Provider Lens Public Sector Services and Solutions report for Brazil is available to subscribers or for one-time purchase on this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260930789887/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3132
[email protected]
Thábata Mondoni, Mondoni Press for ISG
Mobile: +55 11 98671 5652
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KEYWORDS: Latin America South America Brazil
INDUSTRY KEYWORDS: Technology Public Policy/Government Business Professional Services Software Internet Data Analytics State/Local Data Management
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